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PNC Financial Q4 Earnings Beat Estimates, NII & Fee Income Rise Y/Y
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The PNC Financial Services Group, Inc.’s (PNC - Free Report) fourth-quarter 2024 adjusted earnings per share of $3.77 surpassed the Zacks Consensus Estimate of $3.3. In the prior-year quarter, the company reported earnings per share of $1.85.
Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.
For 2024, adjusted earnings per share was $13.74, which beat the Zacks Consensus Estimate of $13.47. This compares favorably with $12.79 reported in the year-ago quarter.
Results were aided by a rise in fee income, NII and higher deposit balance. A decline in expenses and provision for credit losses were other positives. However, a lower loan balance was a headwind.
Net income (GAAP basis) was $1.6 billion, which jumped 84.3% from the prior-year quarter.
For 2024, the company reported net income (GAAP basis) of $5.95 billion, which increased 5.4% year over year.
PNC’s Revenues Rise and Expenses Fall
Total quarterly revenues were $5.57 billion, up 3.8% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $5.47 billion.
Full-year revenues aggregated to $21.6 billion, up marginally year over year. The top line surpassed the Zacks Consensus Estimate of $21.4 billion.
Quarterly NII was $3.5 billion, which rose 4% from the year-ago quarter. Net interest margin (NIM) increased 9 basis points to 2.75%. Our estimate for NII and NIM was $3.44 billion and 2.69%, respectively.
Non-interest income increased 4.4% year over year to $2 billion. The improvement was driven by a rise in all the components of fee income except for residential and commercial mortgage income. Our estimate was $1.99 billion.
Non-interest expenses totaled $3.5 billion, which declined 14% from the year-ago figure. The fall was due to a decrease in personnel, occupancy and other expenses. Our estimate was $3.43 billion.
The efficiency ratio was 61% compared with 62% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability.
PNC’s Loan Balance Declines, Deposits Rise
As of Dec. 31, 2024, total loans were $316.5 billion, which decreased 1.5% on a sequential basis. Our estimate for total loans was $318.8 billion. Nonetheless, total deposits increased nearly 1% from the end of the previous quarter to $426.7 billion. Our estimate for total deposits was $423.8 billion.
PNC’s Credit Quality: Mixed Bag
Non-performing loans increased 6.7% year over year to $2.3 billion. Further, net loan charge-offs were $250 million, which increased 25% year over year.
Nonetheless, the company reported a provision for credit losses of $156 million in the fourth quarter, which declined 32.8% from the year-earlier quarter. Our estimate for Provision for Credit Losses was $279.1 million.
The allowance for credit losses decreased 4.6% to $5.2 billion.
PNC’s Capital Position & Profitability Ratios Improve
As of Dec. 31, 2024, the Basel III common equity tier 1 capital ratio was 10.5% compared with 9.9% as of Dec. 31, 2023.
Return on average assets and average common shareholders’ equity were 1.14% and 12.38%, respectively, compared with 0.62% and 6.93% witnessed in the prior-year quarter.
PNC’s Capital Distribution Activity
In the third quarter of 2024, PNC Financial returned $0.9 billion of capital to shareholders. This included more than $0.6 billion in common stock dividends and more than $0.2 billion in common share repurchases.
Our View on PNC
PNC Financial’s fee income and NII growth will support its top-line growth. Strong capital position aids steady capital distribution activities. However, declining loan balance remains a near-term concern.
The PNC Financial Services Group, Inc Price, Consensus and EPS Surprise
Citizens Financial Group, Inc. (CFG - Free Report) is slated to report fourth-quarter 2024 results on Jan. 17. It has a Zacks Rank #3 at present.
Over the past seven days, the Zacks Consensus Estimate for CFG’s quarterly earnings per share has remained unchanged at 83 cents.
Fifth Third Bancorp (FITB - Free Report) is scheduled to release fourth-quarter 2024 earnings on Jan. 21. The company carries a Zacks Rank #3 at present.
The consensus estimate for FITB’s quarterly earnings has remained unchanged at 87 cents per share over the past seven days.
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PNC Financial Q4 Earnings Beat Estimates, NII & Fee Income Rise Y/Y
The PNC Financial Services Group, Inc.’s (PNC - Free Report) fourth-quarter 2024 adjusted earnings per share of $3.77 surpassed the Zacks Consensus Estimate of $3.3. In the prior-year quarter, the company reported earnings per share of $1.85.
Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.
For 2024, adjusted earnings per share was $13.74, which beat the Zacks Consensus Estimate of $13.47. This compares favorably with $12.79 reported in the year-ago quarter.
Results were aided by a rise in fee income, NII and higher deposit balance. A decline in expenses and provision for credit losses were other positives. However, a lower loan balance was a headwind.
Net income (GAAP basis) was $1.6 billion, which jumped 84.3% from the prior-year quarter.
For 2024, the company reported net income (GAAP basis) of $5.95 billion, which increased 5.4% year over year.
PNC’s Revenues Rise and Expenses Fall
Total quarterly revenues were $5.57 billion, up 3.8% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $5.47 billion.
Full-year revenues aggregated to $21.6 billion, up marginally year over year. The top line surpassed the Zacks Consensus Estimate of $21.4 billion.
Quarterly NII was $3.5 billion, which rose 4% from the year-ago quarter. Net interest margin (NIM) increased 9 basis points to 2.75%. Our estimate for NII and NIM was $3.44 billion and 2.69%, respectively.
Non-interest income increased 4.4% year over year to $2 billion. The improvement was driven by a rise in all the components of fee income except for residential and commercial mortgage income. Our estimate was $1.99 billion.
Non-interest expenses totaled $3.5 billion, which declined 14% from the year-ago figure. The fall was due to a decrease in personnel, occupancy and other expenses. Our estimate was $3.43 billion.
The efficiency ratio was 61% compared with 62% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability.
PNC’s Loan Balance Declines, Deposits Rise
As of Dec. 31, 2024, total loans were $316.5 billion, which decreased 1.5% on a sequential basis. Our estimate for total loans was $318.8 billion. Nonetheless, total deposits increased nearly 1% from the end of the previous quarter to $426.7 billion. Our estimate for total deposits was $423.8 billion.
PNC’s Credit Quality: Mixed Bag
Non-performing loans increased 6.7% year over year to $2.3 billion. Further, net loan charge-offs were $250 million, which increased 25% year over year.
Nonetheless, the company reported a provision for credit losses of $156 million in the fourth quarter, which declined 32.8% from the year-earlier quarter. Our estimate for Provision for Credit Losses was $279.1 million.
The allowance for credit losses decreased 4.6% to $5.2 billion.
PNC’s Capital Position & Profitability Ratios Improve
As of Dec. 31, 2024, the Basel III common equity tier 1 capital ratio was 10.5% compared with 9.9% as of Dec. 31, 2023.
Return on average assets and average common shareholders’ equity were 1.14% and 12.38%, respectively, compared with 0.62% and 6.93% witnessed in the prior-year quarter.
PNC’s Capital Distribution Activity
In the third quarter of 2024, PNC Financial returned $0.9 billion of capital to shareholders. This included more than $0.6 billion in common stock dividends and more than $0.2 billion in common share repurchases.
Our View on PNC
PNC Financial’s fee income and NII growth will support its top-line growth. Strong capital position aids steady capital distribution activities. However, declining loan balance remains a near-term concern.
The PNC Financial Services Group, Inc Price, Consensus and EPS Surprise
The PNC Financial Services Group, Inc price-consensus-eps-surprise-chart | The PNC Financial Services Group, Inc Quote
Currently, PNC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of Banks
Citizens Financial Group, Inc. (CFG - Free Report) is slated to report fourth-quarter 2024 results on Jan. 17. It has a Zacks Rank #3 at present.
Over the past seven days, the Zacks Consensus Estimate for CFG’s quarterly earnings per share has remained unchanged at 83 cents.
Fifth Third Bancorp (FITB - Free Report) is scheduled to release fourth-quarter 2024 earnings on Jan. 21. The company carries a Zacks Rank #3 at present.
The consensus estimate for FITB’s quarterly earnings has remained unchanged at 87 cents per share over the past seven days.